Formal control (alpha = 0.780/0.786)Edit
The authors consider two forms of control, namely formal control and social control.
- Detailed contract is the most important way to guarantee cooperation success.
- The contract is useful to regulate the behavior of partner.
- In the process of cooperation, we use ﬁnancial and market indices to evaluate cooperation success.
- Detailed cooperative rules have been written in the contract.
- Both partners know the cooperative procedures.
- Li et al. (2008): Transformational offshore outsourcing: Empirical evidence from alliances in China. Journal of Operations Management, Vol. 26, No. 2, pp. 257-274.